The Role of Occupational Health and Safety License Certification in Improving Company Pr

oductivity

How important is the role of OHS certification in increasing company productivity?

Nowadays, Occupational Safety and Health (OHS) is not only a formal obligation to a compan
y, but it has also been acknowledged as an investment and a necessity to have a positive imp
act on productivity. As the main foundation, OHS certification ensures companies to run thei
r production and operations efficiently, prevent material loss, fulfill the welfare of their work
ers, and advance to decent work.

The benefits of OHS certification for company productivity are:

1. Increased Productivity

Government policies throughout OHS certification support companies towards greater

productivity by providing workers with OHS awareness and insight to identify productivity
blockers for potential innovation. In fact, without the necessary knowledge, there would
only be a wider yet weaker relationship between productivity and wage growth. OHS
certification generates a balanced understanding that both workers and companies are not
left unheard. Thus, workers will have less distraction, contribute to a safer working
environment, be more focused at work, and yield profitability. In addition, companies can re
duce the chance of material loss and be qualified to participate in legal tender.

2. Effective Risk Management

While companies are exhausted by the challenges of rapidly evolving business models, vario
us risks, and environmental impacts, OHS certification helps companies manage the
company resources more effectively. According to OHS standards, their workers are taught
to address, identify, solve problems, evaluate, and reduce any risks to prevent harming both
workers and the whole company.

3. Qualified and Committed Workers

OHS certification persists not only for companies but also for workers to comply with regulati
ons and laws. In order to create a safe and healthy work culture, companies must hire
competent workers, as proven by their license. Authorised workers pay attention to detail
and are more committed to their work due to their understanding of their responsibilities. T
hey are held accountable by law to protect the company’s assets.

4. Zero Lost Time Injury (LTI)

OHS certification encompasses a thorough measure and mitigation to eliminate inability of

workers to act in time. Practice makes perfect; a continous emergency drill is a must to
estimate further limitations and avoid making the wrong policy decisions. Hence, encourage
reduced lost time and injury that hinder productivity.

5. Positive Company Image

Worldwide, the ILO’s 2024 statistical data stated that there are 340 million occupational
accidents, of which at least 160 million fall victim annually. With over 6,000 deaths occuring
every single day, a workplace should not be let down as a nightmare. This reflects a common
responsibility to earn a positive company's image in the eyes of both local and international
stakeholders.

Reference:https://www.ilo.org/moscow/areas-of-work/occupational-safety-and-health/
WCMS_249278/lang--en/index.htm

6. Sustainable Development

Low productivity and low growth lead to a low-income trap and poverty. Furthermore,
intensified market competition and stagnated growth despite technological support show
that OHS certification requires an operationally integrated strategy. Investment in workers,
integrated policies, and structural transformation create decent work as the basis for sustain
ability and growth. Investment in OHS is not just for now since it is also a step towards a brig
hter and more sustainable future.

7. Compliance with Legal Regulations

As a legal requirement based on Indonesian Constitution Number 13 of 2003 Article 190,

there are legal sanctions such as punishment and penalties if companies are not willing to co
mply with OHS regulations. For examples, a written reprimand, a temporary suspension,
interruptions in business operations, and a revoked business license.
Understanding the role of OHS certification as a strategic investment, growth is not limited t
o operational efficacy but workers’ capacities. OHS certification is a mandatory requirement
for regulatory compliance and also a mission to create a work environment that supports
continuous, long-term growth and sustainability. Therefore, companies engaging in OHS certi
fication attain not only the safety standard but also build a solid foundation for a successful f
uture.